Toshiba Corp. said it will appoint a committee to investigate possible problems with accounting methods used for infrastructure projects in fiscal year 2013.
The panel will examine the “reasonableness of estimates” when using the percentage-of-completion accounting method for some projects, the Tokyo-based industrial group said a statement Friday. The effect on earnings hasn’t been determined, according to the statement.
Toshiba, which makes chips, nuclear reactors, appliances and electronics, got 11 percent of operating income from its power and social infrastructure business in the year started April 1, 2013. The investigation will take about a month, the company said.
“Some items in the accounting method for work completed needed to be re-examined,” said Naomi Furuya, a spokeswoman for Toshiba. “This was discovered in March in a routine accounting survey.” She declined to give further details.